China to Tighten Non-Ferrous Metals Output

China has worked out plans to rein in its non-ferrous metals refining capacities over the next five years, while moving to shut down outmoded capacities and improve industry consolidation.

Shang Fushan, vice chairman of the China Nonferrous Metals Industry Association, said on July 23 at an industry forum that the draft plan of the non-ferrous metals industry development for the Twelfth Five-Year Plan between 2011 and 2015 has set targets to limit refining capacity expansion.

According to the draft plan, by 2015, refining capacity for raw copper will be limited to 5 million tons, electrolytic copper refining capacity will be limited to between 6.5 million tons and 7 million tons. Alumina will be capped at 42 million tons; aluminum, 20 million tons; lead, 5.5 million tons and zinc, 6.7 million tons.

The draft advocates strengthening concentration in non-ferrous metals industries. It expects that by 2015, the top ten producers of copper and aluminum to occupy 90 percent of their market. The top ten leaders in zinc and lead refining are predicted to take up 70 percent of industry share.

The draft also set a target for domestic raw material supply to meet 40 percent of the copper industry's demand, 80 percent for aluminum and 50 percent for zinc. Meanwhile, it encourages domestic cooperation with natural resource companies abroad.

China Securities Journal reported that special terms for the development of five kinds of rare metals are set in the Twelfth Five-Year Plan, including tungsten, molybdenum, stannum, antimony and rare earth metals.